IMF International Capital Markets 1999 -- Table of Contents

WORLD ECONOMIC AND FINANCIAL SURVEYS
International Capital Markets
Developments, Prospects, and Key Policy Issues
September 1999

By a Staff Team led by Charles Adams, Donald J. Mathieson, and Garry Schinasi

The International Capital Markets Report ceased publication in August 2001. Both the Report and the Emerging Market Financing quarterly (published 2000-2001) have been replaced by a new quarterly, The Global Financial Stability Report. The new report was created to provide timely and comprehensive coverage of both mature and emerging financial markets as part of the IMF's stepped up tracking of financial markets.

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	Preface List of Abbreviations

30k pdf file	I.	Introduction and Overview

1004k pdf file	II.	Developments, Trends, and Issues in the Mature Financial Markets The Mature Market Turbulence and Its Aftermath Developments in Money and Credit Markets Since the Turbulence Developments in the Major Foreign Exchange Markets Since the Turbulence Developments in the Major Equity Markets Since November 1998 Developments in Derivatives Markets Developments in the Major Banking Systems Risks and Vulnerabilities References

718k pdf file	III.	Emerging Markets: The Contraction in External Financing and Its Impact on Financial Systems Financial Market Developments Private Capital Flows to Emerging Markets and Developments in the Bond, Equity, and Syndicated Loan Markets Developments in Emerging Market Banking Systems Asian Banking Systems References

149k pdf file	IV.	Managing Global Finance: Private and Public Policy Challenges Raised by Last Fall's Mature Market Turbulence Recurring Features of Turbulence and Crisis: Importance of Lines of Defense Against Systemic Problems Environment in Which Financial Excesses Accumulated and Created the Potential for Systemic Problems Private and Public Policy Issues and Challenges Proposals for Reform Remaining Challenges Overall Assessment and Conclusion Appendix 1. Off-Balance-Sheet Leverage Appendix 2. Impact of HLIs on Small and Medium-Sized Markets References

603k pdf file	V.	Emerging Markets in the New Financial System: Nonstandard Responses to External Pressure and the Role of the Major Credit Rating Agencies in Global Financial Markets Nonstandard Policy Interventions in Emerging Markets The Role of the Major Credit Rating Agencies in Global Financial Markets References

37k pdf file	VI.	Summary and Conclusions Mature Markets Emerging Markets Private and Public Policy Challenges Raised by Highly Leveraged Institutions and Activities Emerging Markets and the International Financial System

212k pdf file	Annex I: Progress with European Monetary Integration Money Market Integration and EMU Financial Infrastructure Outlook for Pan-European Capital Markets Banking System Consolidation and Restructuring Financial Supervision, Regulation, and Crisis Management References

404k pdf file	Annex II: Banking System Developments and Corporate Sector Restructuring in Japan Overview of Banking System Issues Main Policy Developments in Banking Remaining Challenges Financial Reorganization and Corporate Restructuring Approaching a Crossroad Directions for Change Prospects and Risks References

84k pdf file	Annex III: Developments in Emerging Market Banking Systems Asia Latin America Central Europe References

104k pdf file	Annex IV: Proposals for Improved Risk Management, Transparency, and Regulatory and Supervisory Reforms Proposals to Strengthen Risk Management and Internal Control Systems Disclosure and Market Discipline Highly Leveraged Institutions Supervision of Financial Conglomerates and International Accounting Standards References

446k pdf file	Annex V: Credit Ratings and the Recent Crises Factors in Sovereign Ratings and Empirical Studies of Determinants Review of Ratings During the Crises Evaluating Rating Agencies: By What Criteria? Survey of Credit Rating Agencies References

483k pdf file	Annex VI: Use of Ratings in the Regulatory Process References

	Boxes Chapters
	2.1.		The April 1998 BIS Survey of Foreign Exchange and OTC Derivatives Markets
	2.2.		Interest Rates and Implied Dividend Growth in G-7 Stock Markets
	2.3.		Ongoing Reforms in the U.S. Equity Market Infrastructure
	2.4.		Implications of the Y2K Problem for the Major Financial Systems
	3.1.		Russia: The Feeding Frenzy
	3.2.		The Activity of HLIs in Pacific Rim Currencies in 1998
	3.3.		The Decline in Liquidity in Emerging Market Bonds and Foreign Exchange
	3.4.		The Collapse of GITIC
	3.5.		The Nondeliverable Forward Market
	3.6.		Issues Involving the Possible Restructuring of Eurobonds
	3.7.		Is the Bond Market Becoming More Discriminating?
	3.8.		Private Contingent Credit Lines
	4.1.		Proposed Revisions to the Basel Accord on Capital Adequacy
	5.1.		The Mechanics of a "Double Play"
	Annexes
	A2.1.		Stock Market Reaction to Recent Restructuring Announcements in Japan
	A3.1.		Corporate Debt Restructuring in Asia
	A3.2.		Hybrid Instruments in Asian Bank Recapitalization
	A3.3.		Deposit Insurance: Issues for Emerging Markets
	A5.1.		Standard & Poor's Issuer Ratings
	A5.2.		Moody's Issuer Ratings
	A5.3.		Criteria for Eligible External Credit Assessment Institutions

	Tables Chapters
	2.1.		Major Industrial Countries: Outstanding Amounts of Private Sector Domestic Debt Securities
	2.2.		Announced International Syndicated Credit Facilities by Nationality of Borrowers
	2.3.		Outstanding Amounts of International Debt Securities
	2.4.		Outstanding Amounts and Net Issues of International Debt Securities by Currency of Issue
	2.5.		Currency Composition of Notional Principal Value of Outstanding Interest Rate and Currency Swaps
	2.6.		Markets for Selected Derivative Financial Instruments: Notional Principal Amounts Outstanding
	2.7.		Notional Value of Outstanding Interest Rate and Currency Swaps of ISDA Members
	2.8.		New Interest Rate and Currency Swaps
	2.9.		Annual Turnover in Derivative Financial Instruments Traded on Organized Exchanges Worldwide
	2.10.		Claims of Banks in BIS-Reporting Countries on Selected Emerging Markets as of December 1998
	3.1.		Net Private Capital Flows to Emerging Markets, 1990-98
	3.2.		Changes in Bank Exposures to Emerging Markets
	3.3.		Gross Private Market Financing to Emerging Markets, by Region, Financing Type, and Borrower Type
	3.4.		Selected Emerging Markets: Banking System External and Domestic Liquidity Conditions
	4.1.		Leverage Ratios in Basic Derivative Instruments
	4.2.		Global Positions and Approximate Gross Leverage Ratios in OTC Derivatives Markets by Type of Risk Instrument
	5.1.		Local Credit Rating Agencies
	5.2.		Rating Categories
	5.3.		Sovereign Foreign Currency Ratings: Average One-Year Transition Rates by Rating Category
	Annexes
	A1.1.		Distribution of Interbank Loans and Deposits Across EMU Countries Before and After EMU
	A1.2.		Bid-Ask Spreads of Overnight Interbank Rates for Selected Countries, 1998-99
	A2.1.		Japan: Estimates of Problem Loans for the Major Banks
	A2.2.		Japan: Estimated Uncovered Loan Losses, September 1998
	A2.3.		Japan: Financial Supervisory Agency's Special Inspections of Major Banks, December 1998
	A2.5.		Japan: Public Capital Injections, March 1999
	A2.6.		Japan: Legal Procedures for Insolvent Companies
	A2.7.		Japan: Features of Reorganization Procedures in the United States and Germany and the Prospective Financial Rehabilitation Law in Japan
	A4.1.		Key International Supervisory and Regulatory Reports and Guidance Notes
	A5.1.		Variables Used in Sovereign Rating Analysis by Standard & Poor's
	A5.2.		Rating and Spread Trends
	A5.3.		Market Ratings of Crisis Countries
	A5.4.		Survey of Credit Rating Agencies
	A6.1.		U.S. Regulations Making Use of Credit Ratings
	A6.2.		Regulatory Use of Credit Ratings in Selected Countries

	Figures Chapters
	2.1.		Major Industrial Countries: Stock Market Price Indices, January 1, 1997-June 25, 1999
	2.2.		Major Industrial Countries: Nominal Interest Rates, January 1, 1997-June 30, 1999
	2.3.		United States: Corporate Bond Market, January 1998-May 1999
	2.4.		United States: Yields on Corporate and Treasury Bonds, January 5, 1962-June 25, 1999
	2.5.		United States: Developments in Fixed-Income Securities Markets, January 1, 1998-June 30, 1999
	2.6.		Major Industrial Countries: Effective Exchange Rates, January 1991-May 1999
	2.7.		Selected Countries: Bilateral U.S. Dollar Exchange Rates, January 1, 1998-June 30 1999
	2.8.		Weighted Average Spreads for Announced Facilities in the International Syndicated Credit Market, First Quarter 1992-First Quarter 1999
	2.9.		United States: Equity Market Performance, 1926-March 1999
	3.1.		Yield Spreads on Emerging Market and U.S. High Yield Bonds
	3.2.		Secondary Market Yield Spreads on U.S. Dollar-Denominated Eurobonds by Selected Emerging Markets
	3.3.		Total Return Equity Indices: IFC Global and S&P 500
	3.5.		Emerging Markets Sovereign Ratings Changes, May 1997-May 1999
	3.6.		Brazil: Financial Market Indicators
	3.7.		Emerging Market Bond Market Issuance Around Crises
	3.8.		Volatility of Weekly Returns in Emerging Equity Markets
	3.9.		Emerging Market Equity Mutual Funds: Estimated Net Flows
	3.10.		Real Estate and Stock Prices-Selected Asian Countries
	4.1.		United States: Top 25 Commercial Banks-Notional Amount of Derivatives, Equity Capital, and the Gross Off-Balance-Sheet Leverage Ratio, Fourth Quarter 1995 - Fourth Quarter 1998
	5.1.		Stock Market Indices: Hong Kong Hang Seng and Dow Jones Industrial Average
	5.2.		Selected Stock Market Indices
	5.3.		Malaysia: Portfolio Investment Flows
	5.4.		Overnight Interest Rates, Foreign Exchange Rates, and Stock Market Indices
	5.5.		Emerging Markets: Number of Sovereign Ratings by Category
	5.6.		Moody's-Rated Default Count by Industry and Trend
	5.7.		5-, 10-, and 15-, and 20-Year Average Cumulative Default Rates, 1970-
	5.8.		Ten-Year Cumulative Default Rates and Volatilities, 1920-98
	5.9.		Average Credit Ratings in Emerging Market Countries
	Annexes
	A1.1.		ECB: Interest Rates and Standing Facilities, January 4-June 11, 1999
	A1.2.		Distribution of Cross-Border Payments in EMU Between EBA and TARGET, January-May 1999
	A1.3.		Overnight Rates on Unsecured Interbank Funds in the Euro Area, January 4-June 10, 1999
	A1.4.		France and Spain: Overnight Repo Rates, January 4, 1999-June 11, 1999
	A2.1.		Japan: Banking System Strains, 1997-99
	A2.2.		Japan: Major Banks' Profits, 1988-99
	A2.3.		Japan: Postal Saving Deposits, 1987-98
	A5.1.		Emerging Markets: Sovereign Ratings and Fundamentals
	A5.2.		Argentina
	A5.3.		Brazil
	A5.4.		Hungary
	A5.5.		Indonesia
	A5.6.		Korea
	A5.7.		Malaysia
	A5.8.		Mexico
	A5.9.		Poland
	A5.10.		Russia
	A5.11.		Thailand
	A5.12.		Turkey
	A5.13.		Average Cumulative 15-Year Default Rates for Corporate Issuers
	A5.14.		Rating Stability